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I've been curious what the hypothetical outcome would be if you were to invest the same amount of money in every IPO for the past 30 years and sell at a fixed t
by jameslk 6y ago
I've been curious what the hypothetical outcome would be if you were to invest the same amount of money in every IPO for the past 30 years and sell at a fixed time 10 years later. Are IPOs underpriced, overpriced, or neither on average over the long term? How does the return compare to investing the same amounts into the S&P 500 or similar benchmarks over the past 30 years?
- hendzen 6y agothere is an ETF that does this, at 2 years rather than 10. https://www.renaissancecapital.com/IPO-Investing/US-IPO-ETF https://www.renaissancecapital.com/IPO-Investing/US-IPO-ETF. Performance ITD has been worse than SPY until very recently when a lot of tech companies (incl IPOs) have had very strong performance... which is obviously why this thread is even happening.
- jameslk 6y agoInteresting... although 2 years doesn't seem like a meaningful enough time frame to capture real growth, only hype.
- quickthrower2 6y agoWhich is the strategy no doubt!